General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

What role do advisory councils play within a franchise system?

Within the framework of a successful partnership franchisees often have
opportunities to have a say in or be involved in important company decisions.
Whilst in smaller systems franchisees are able to represent themselves directly
when discussing matters with the franchisors, in large systems representatives
are often sent in the form of committees or advisory councils. By being
democratically elected through secret ballots the representatives receive the
necessary authorisation to represent the whole group.

The official establishment of their rights can also have a positive effect on
the franchisees’ motivation. Although such bodies do not have a right to a veto,
franchisors would be very unwise to force through an important decision if the
franchisees have declared themselves to be against it.

In some franchise systems special advertising advisory councils have been
created to ensure that franchisees are systematically involved in the conception
and realisation of central marketing measures. In this connection the most
important tasks are drawing up advertising suggestions, developing advertising
material, carrying out national advertising campaigns as well as organising
press and public relations work.